Chartbook 2006

Organizational Trends

Chapter 2:Organizational Trends

Chartbook 2006

Organizational Trends

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1981 – 2004, for community hospitals

(1) All nonfederal, short-term general, and specialty hospitals whose facilities and services are available

to the public

(2) Data on the number of urban and rural hospitals in 2004 were collected using coding different from previous

years to reflect new Centers for Medicare and Medicaid Services wage area designations2-2

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04

Chart 2.1:Number of Community

Hospitals(1)

1981 - 2004

All Hospitals

Urban Hospitals

Rural Hospitals

(2)

Chartbook 2006

Organizational Trends

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

818283848586878889909192939495969798990001020304

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2-3

Beds

Chart 2.2:Number of Beds and

Number of Beds per 1,000 Persons

1981 - 2004

Number of Beds

Number of Bedsper 1,000

Beds

per

Thousa

nd

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1981 – 2004, for community hospitals

Chartbook 2006

Organizational Trends

2-4

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 2004 for community hospitals and US Census Bureau: State and County QuickFacts, 2004 population estimate data derived from Population Estimates, 2000 Census of Population and Housing

RI 2.22DE 2.35DC 6.24

3 – 3.99

2 – 2.99

<2

4 – 4.99

> 5

Chart 2.3:Beds per 1,000 by State

2004

Chartbook 2006

Organizational Trends

2-5

2,400

2,500

2,600

2,700

2000 2001 2002 2003 2004

Chart 2.4:Number of Hospitals in Health

Systems(1)

2000 - 2004

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 2000 – 2004, for community hospitals

(1) Hospitals that are part of a corporate body that may own and/or manage health provider facilities or

health-related subsidiaries as well as non-health-related facilities including freestanding and/or

subsidiary corporations

Chartbook 2006

Organizational Trends

Source: Verispan’s Diagnostic Imaging Center Profiling Solution, 2004.

*2005 values are estimated based upon current trends.

2-6

Chart 2.5:Percent of Outpatient Surgeries by

Facility Type1981 – 2005

0%

20%

40%

60%

80%

100%

81 83 85 87 89 91 93 95 97 99 01 03 05*

Hospital Owned Facilities - 45%

FreestandingFacilities - 38%

Physician Offices -17%

Chartbook 2006

Organizational Trends

2-7

2,4252,754 2,864

3,508 3,5703,836

4,601

5,095

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

1996 1998 2000 2001 2002 2003 2004 2005

Chart 2.6:Number of Freestanding Ambulatory Care

Surgery Centers1996, 1998, and 2000 – 2005

Source: Verispan’s Diagnostic Imaging Center Profiling Solution

Chartbook 2006

Organizational Trends

2-8

0%

5%

10%

15%

20%

25%

30%

35%

95 96 97 98 99 00 01 02 03 04

Chart 2.7:Percentage of Hospitals with Physician

Affiliates(1)

by Type of Relationship1995 - 2004

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1995 – 2004, for community hospitals

(1) A hospital is considered to have a physician relationship if the relationship exists as part of the hospital or a

system or network of which the hospital is a part

Group Practicewithout Walls

Management ServiceOrganization

Physician Hospital

Organization

IPA

Chartbook 2006

Organizational Trends

2-9

Chart 2.8:Percentage of Hospitals with Insurance

Productsby Type of Insurance

1995 - 2004

0%

5%

10%

15%

20%

25%

30%

35%

95 96 97 98 99 00 01 02 03 04

Preferred Provider Organization

Health Maintenance Organization

Indemnity orFee-for-service

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1995 – 2004, for community hospitals

Chartbook 2006

Organizational Trends

2-10

Chart 2.9:Percentage of Hospitals Offering “Non-hospital”

Services(1)

1995 - 2004

0%

10%

20%

30%

40%

50%

60%

70%

80%

95 96 97 98 99 00 01 02 03 04

Source: The Lewin Group analysis of American Hospital Association Annual Survey data, 1995 – 2004, for community hospitals

(1) Includes services offered in hospital, health system, network or joint venture

Assisted Living

Other Long Term Care

Meals on Wheels

Skilled Nursing Facility

Hospice

Home Health Services

Chartbook 2006

Organizational Trends

2-11

Chart 2.10:Announced Hospital Mergers and

Acquisitions1998 - 2004

Source: The Health Care Acquisition Report by Irving Levin Associates, Inc., Eleventh Edition, 2005

Number of Deals Number of Hospitals

86 83

5838

59

287

175

132118

101

56

236

110

139

0

50

100

150

200

250

300

350

1998 1999 2000 2001 2002 2003 2004